25/08/2015 - 11:11

Pacific upbeat despite profit drop

25/08/2015 - 11:11

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Power generation company Pacific Energy has posted a 19 per cent fall in net profit for the 2015 financial year, but was upbeat on its outlook for the year ahead.

Pacific upbeat despite profit drop
The Gwalia Deeps power station, north of Kalgoorlie.

Power generation company Pacific Energy has posted a 19 per cent fall in net profit for the 2015 financial year, but was upbeat on its outlook for the year ahead.

Pacific Energy reported a small 3 per cent decline in revenue to $45.7 million, with net profit at $11.9 million.

It also declared a final dividend of 1.5 cents per share, fully franked, to bring its total payout to 2.5 cents.

Earnings before interest, tax, depreciation and amortisation was down 10 per cent to $30.8 million.

Managing director Jamie Cullen said despite the modest fall in earnings, the company’s result was credible given the current mining climate.

“Like most companies exposed to natural resources, we have been impacted by the downturn, but have stabilised with our balance sheet intact, with quality income under long term contracts in place and with growth opportunities in the year ahead,” he said.

He added that the company expected a stronger result in FY16, with forecast EBITDA growth of about 10 per cent.

“During the year Pacific Energy’s contracted power capacity fell back to 210 megawatts late in the first half, however we have recently managed to build that back up to 243MW as a result of several contract wins,” Mr Cullen said.

“This is an 11 per cent increase in contracted power capacity and, together with the conversion of the Tropicana power station from diesel to gas and re-starting the roll out of waste heat recovery units, will keep our operational teams busy and lead to increasing results.”

The company is optimistic that along with several recent contract extensions, it will be awarded new contracts during the year ahead.

Pacific Energy shares climbed 10.5 per cent to 42 cents each at 11am.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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